I am a new member, when can I start borrowing?
We donít have any hard and fast rules about how long you have to be a member before you can apply for a loan. Each memberís circumstances are unique. Some new members will have well-paying jobs and few or no expenses. These lucky members will build up a share balance quickly and are likely to get a first loan just as quickly because they can afford to repay it. Other members might just be starting out on their careers on entry level wages. They might be repaying student loans and paying rent. It will take them a little longer to build up their shares record. And some of our new members might be between jobs and also find it takes a little longer to build up their shares.
Whatever your circumstances, we recommend you build a pattern of savings for a few months and then apply for a small loan -- maybe a couple of hundred pounds if you are between jobs or on an entry-level salary. If you receive this loan, pay it off (donít forget to continue to save!) and then apply for a slightly larger loan. Continue doing this until you have built up a good savings and loan history with us. Then youíll be in a position to apply for a substantial loan when you need it. For more information on loans, see Loans.
Why do some members get their loans immediately and others have to wait?
Members who receive their loans at the time of application have what is called Immediate Loan Status. For further information on Immediate Loan Status, see Loans.
Other loan applications are required to go to Credit Committee when three individuals must agree on the decision. For more information on credit committee and when applications go to credit committee, see Loans.
Who can open a minor account for a child?
The childís parent or legal guardian who is also a member of Derry Credit Union may open a minor account for a child. The parent or legal guardian must present the childís long-form birth certificate and his or her own passbook. In the case of legal guardianship, proof of guardianship (i.e. adoption papers, etc.) must also be presented. The parent or guardian opening the account is known as the ísigning parent or guardianí and this adult will assume responsibility for the operating of the account. For more information on opening accounts, see Membership.
When and how does a minor account become an adult account?
When the minor turns age 16, we close the minor account and open an adult account for the child, transferring all funds into the new account and deducting the £1 joining fee. We will notify the minor of this change and invite him or her to visit the the office along with his or her signing parent or guardian, to present the required identification and collect his or her new adult passbook. Information detailing the types of identification required will be included in the letter sent to the minor. (A minor must have a minimum of £6 in his or her account in order for this transfer to take place.)
What is the savings limit for minor accounts?
The current savings limit for minor accounts is £5,000 plus dividend. For more information on savings and savings limits, see Savings.
Are my savings doubled at death?
Not necessarily! But some of your savings might double at death. Shares that double are:
- Shares you lodged before age 55,
- Shares that were lodged while you were in good health, and
- Shares that you kept in your account.
Remember that the current maximum amount insured under Life Savings Insurance is £15,000. Amounts over this continue to earn a dividend but will not earn any additional insurance. However, if you withdraw any portion of your shares, you lose the insurance on those shares resulting in a reduction of the total amount of shares + insurance. It is in your best interest to save as young as you can and to keep your shares in your account! For further information see Insurance.
Are all my shares insured?
Not necessarily! The shares that are not insured are:
- Those that you lodge after you reach age 70, or
- Those that you lodge while not in good health, or
- Amounts over £15,000, or
- Shares you withdraw.
For further information, see Insurance.
If I take out my shares can I still keep all my insurance?
No! Only the shares you keep in your account are insured. When you withdraw a portion of your shares, you lose the insurance attached to that portion of your shares. Thatís why we encourage members who are eligible for loans and who can afford them to borrow from us instead -- by borrowing instead of withdrawing your shares, you can keep the insurance attached to them. (And your loan balance is insured as well, subject to terms and conditions.) For futher information, see Insurance.
Is my loan always cleared at death?
No! Loans taken when you were not in good health and loan balances remaining after you reach age 85 are not insured by Loan Protection Insurance. If you are approaching age 85, it may be wiser for you to withdraw some of your shares (especially those not covered by Life Savings Insurance) rather than borrow and risk leaving an outstanding loan balance for your loved ones to pay. (Any member whose loan will not be cleared until after age 80 will be asked to sign a declaration that the loan is intended for their personal use.) For further information, see Insurance.
Can my family get my savings at death?
Of course! But first you must complete a Form of Nomination available at our Reception desk. On this form, you will be asked to name the person, persons or charitable group you wish to receive your shares in the event of your death. Derry Credit Union can disburse amounts up to £10,000 to the person(s) or group nominated upon request. (Probate must be extracted on amounts over £10,000.) By completing this nomination, you can be assured that the person(s) or group you intended to receive your shares will receive them without red tape or delay. You must update your nomination if you marry, divorce or if the person nominated dies before you. In addition, a properly completed Form of Nomination takes precedence over a will. As you go through the course of your life and update your will, make sure you update your nomination too! You may change your nomination as often as you like and you may name more than one person or group as your nominee.